Enhancing risk management practices: Alumnus research sheds light on key findings Stellenbosch Business School Skip to main content
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Alumnus Sakhiwo Nelani’s research evaluates the effectiveness and efficiency of risk management practices among Management and Councillors.

In a recent study conducted by accomplished researcher Sakhiwo Nelani, the focus was squarely on evaluating the effectiveness and efficiency of risk management practices among Management and Councillors. The research, titled "The Perception of Management and Councillors with Regard to the Effectiveness and Efficiency of Risk Management Practices," delves into critical aspects of risk management within South African municipalities.

The study's findings reveal a concerning trend of insufficient attention to best practices, particularly with enterprise-wide risk management lacking the necessary structure and consistency. Nelani's research identifies a weak control environment, pointing out that inadequate internal controls leave organisations vulnerable to asset loss and fraud. Furthermore, compliance mechanisms with governance laws are notably absent, and the absence of surprise risk-based audits reflects a gap in the organisational culture.

Employing a quantitative approach through a questionnaire survey involving 66 randomly selected participants out of 80, Nelani acknowledges the study's limitations, such as the lack of generalisability beyond the sampled organisation and reliance on respondents' input. Despite these limitations, the study sheds light on the potential implications of poor risk management practices, including service delivery issues, community protests, irregular expenditures, and a decline in investor confidence.

The significance of this research lies in its aim to address and enhance risk management practices in South African municipalities. The ultimate goal is to catalyse improvements in performance, service delivery, and decision-making processes. Nelani's recommendations include:

  • Restructuring enterprise-wide risk management.
  • Bolstering Governance, Risk, and Control processes.
  • Implementing a comprehensive compliance register.
  • Introducing routine and surprise audits for effective control supervision.

This research serves as a crucial stepping stone towards fostering positive change, ensuring a more resilient and secure future for local governance.


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